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SEC Filings

10-K
INTERPUBLIC GROUP OF COMPANIES, INC. filed this Form 10-K on 02/23/2015
Entire Document
 
Notes to Consolidated Financial Statements – (continued)
(Amounts in Millions, Except Per Share Amounts)

Amounts reclassified from accumulated other comprehensive loss, net of tax for the years ended December 31, 2014, 2013 and 2012 are as follows:
 
 
Years ended December 31,
 
 
2014
 
2013
 
2012
 
Affected Line Item in the Consolidated Statements of Operations
Foreign currency translation adjustments
 
$
(0.9
)
 
$
0.0

 
$
0.0

 
Other (expense) income, net
  Gains (losses) on available-for-sale securities
 
0.0

 
(1.4
)
 
0.7

 
Other (expense) income, net
Losses on derivative instruments
 
1.9

 
1.7

 
0.3

 
Interest expense
Amortization of defined benefit pension and postretirement plans items 1
 
10.5

 
10.8

 
8.4

 
 
Tax effect
 
9.6

 
(2.4
)
 
10.3

 
Provision for income taxes
Total amount reclassified from accumulated other comprehensive loss, net of tax
 
$
21.1

 
$
8.7

 
$
19.7

 
 
 
1
These accumulated other comprehensive loss components are included in the computation of net periodic cost. See Note 12 for further information

Note 10:  Incentive Compensation Plans
2014 Performance Incentive Plan
We issue stock-based compensation and cash awards to our employees under a plan established by the Compensation and Leadership Talent Committee of the Board of Directors (the “Compensation Committee”) and approved by our shareholders. In May 2014, our shareholders approved the 2014 Performance Incentive Plan (the “2014 PIP”), replacing the 2009 Performance Incentive Plan (the “2009 PIP”) and previous incentive plans. The number of shares of common stock initially available for grants of all equity awards under the 2014 PIP is 28.8. Pursuant to the terms of the 2014 PIP, the number of shares that may be awarded to any one participant for each type of award is limited to 2.0. The vesting period of awards granted is generally commensurate with the requisite service period. We generally issue new shares to satisfy the exercise of stock options or the distribution of other stock-based awards.
Additionally, under the 2014 PIP, we have the ability to issue performance cash awards. The performance cash awards are granted to certain employees who otherwise would have been eligible to receive performance-based stock awards. These awards have a service period vesting condition and a performance vesting condition. The amount of the performance cash award received by an employee with a performance vesting condition can range from 0% to 300% of the target amount of the original grant value. Performance cash awards generally vest in three years. A committee of the Board of Directors may grant performance cash awards to any eligible employee; however, no employee can receive more than $10.0 during a performance period.
The amount of stock-based compensation expense as reflected in salaries and related expenses in our Consolidated Statement of Operations, and the related tax benefit, are listed below.
 
Years ended December 31,
 
2014
 
2013
 
2012
Stock options
$
2.1

 
$
3.7

 
$
5.4

Stock-settled awards
10.0

 
9.8

 
14.9

Cash-settled awards
0.6

 
1.5

 
3.9

Performance-based awards
42.2

 
29.6

 
24.5

Employee stock purchase plan
0.6

 
0.6

 
0.6

Other 1
1.2

 
0.8

 
1.1

Stock-based compensation expense
$
56.7

 
$
46.0

 
$
50.4

Tax benefit
$
20.6

 
$
17.6

 
$
19.7

 
1
Represents charges recorded for severance expense related to stock-based compensation awards.

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